Lifetime Isa for the under 40s?

Back in March 2016 George Osbourne launched a plan for younger workers to no longer have to choose between saving for a home or for retirement, as he revealed a new Lifetime Isa with a bonus of up to £1,000 a year. The new Lifetime Isa - which can be invested in stocks and shares or cash savings – launches this April to help people, aged 18 to 40 get a foot on the housing ladder, without hindering their efforts to put aside money for their pension.

Savers to this Isa can tap into their bonus pot to use some or all of the money to buy their first home, or wait until they are 60 to withdraw cash and their bonus tax-free. Savers can put in up to £4,000 a year to qualify from a maximum government bonus of £1,000 - contributions will get this 25 per cent top-up every year until age 50. This is a £1 bonus for every £4 that you save. The bonus will be paid on some or all money taken out to buy a first home, or after the age of 60.

Money taken out of the Lifetime Isa before age 60 for anything other than a first home will lose the government bonus, all interest or stock market growth delivered by that element, and face a 5 per cent charge. But the annual Lifetime Isa allowance falls within the new total £20,000 Isa umbrella.  If you are a younger saver and want to find out more Enables experienced Independent Financial Advisors in Bishops Stortford are happy to help.

http://www.thisismoney.co.uk/money/pensions/article-3494870/Budget-2016-Lifetime-Isa-1k-year-bonus-save-pensions-homes.html

Issued by: Enable Independent Financial Life Planners • 
25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

What is it about buy to let?

For most financial planning Enable’s IFAs in bishops Stortford would recommend some property investments. The rapid growth in popularity of buy-to-let in recent years, fuelled in part by the failings of the pensions industry has maybe got a bit out of control and the government has been trying to curb it with the introduction of the 3% levy on stamp duty in April 2016. But the fact is that many investors remain attracted by the high yields in some parts of the country, low void periods and potential for capital growth that BTL offers.

Instead of steering clear of the market, many private landlords continue to add to their property portfolios, as reflected by the increase in the amount BTL investors borrowed to invest in property last year. The volume of BTL mortgages increased by 3% last year compared with figures for 2015, according to data released by the Council of Mortgage Lenders (CML).“2016 could have been a potentially destabilising year of regulatory and political change, but the mortgage market has been resilient and adaptable,” said Paul Smee, director general of the CML.

With interest rates at a record low level, competition among mortgage providers, somewhat unsurprisingly, continues to hot up, with lenders shaving percentage points off their buy-to-let mortgage rates in an effort to entice BTL landlords acquiring new properties through their doors.
 “The buy-to-let market is booming. With over 100 more deals available compared to a year ago and the average fixed rate on buy-to-let falling from 3.65% to 3.34% in 12 months, it’s easy to see how lenders have an appetite for new business,” said Rachel Springall, finance expert at Moneyfacts. Enables IFAs might not suggest a BTL property for you but there are other ways to tap into the property markets that we are happy to talk you though.

https://www.estateagenttoday.co.uk/features/2017/2/buy-to-let-mortgages-what-opportunities-and-challenges-lie-ahead

Innovative Isas offering 12% tax-free returns?

Enable’s experienced IFA’s in Bishops Stortford have had much sympathy with Britain’s savers for a long time. Many are desperate to find ways to give their finances a boost and recently a new type of Isa offering returns of up to 12% or perhaps even 20% in future has arrived. But are rates like this simply too good to be true?

Some experts are predicting that this will be the year that a new tax-free account for peer-to-peer lending and crowd funding will shake up the savings market and bring some much-needed better news on returns. Peer-to-peer websites match borrowers (individuals or companies) with investors or lenders. They cut out the banks by putting people with money to lend in touch with those who want to borrow. This results in a so-called “innovative finance” Isa they have been around since last April, but it is only now that there are some accounts to choose between.

The selection however is still very limited, with few well-known names because many of the biggest players in the peer-to-peer lending sector are still awaiting the final go-ahead that they need in order to offer them. It is looking increasingly likely that many of these companies will end up missing out on the 2016-17 Isa season because they won’t get their full approval from the City regulator in time they are also clarity much more risky as an investment but it will be interesting to see how things develop.  But is worth remembering it is Isa time and during the current tax year you can save up to £15,240 in one type of Isa or split the allowance across two or all three types and from this April, the total amount you can save each year into all Isas will increase to £20,000.

https://www.theguardian.com/money/2017/feb/18/innovative-finance-isa-tax-free-high-returns-risky


Issued by: Enable Independent Financial Life Planners • 
25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

Win a £75 bouquet for your Mum this Mother's Day

Enable Independent Financial Advisors in association with Margaret Kay Flowers and Wines of Bishop's Stortford are giving you the chance to win a beautiful £75 bouquet for your Mum this Mother's Day. Simply LIKE and SHARE the relevant Facebook post in order to be in with a chance to win a Margaret Kay bouquet. T's and C's do a apply, see below.

Terms and Conditions:

1. There will be only one winner of the £75 bouquet and no money equivalent will be offered 2. The winner will need to LIKE and SHARE the Mother's Day post in order to enter 3. The Entrant will need to live within a 20 miles radius of Bishop's Stortford 4. All entrants will need to be 18 or over 5. The winner will be announced on the Facebook page on Wednesday 22 March 6. All names will be put into a hat and drawn at random. 7. No members or employees of Enable Independent Ltd will be eligible to enter. 8. Entrants will need to provide their full name and address - so they will need to be able to receive direct messages through FB.

Small business red tape

A recent survey of 500 SME’s has revealed that that hurdles like HR compliance, health and safety demands and pension admin are stopping owners from growing their enterprise. On average these and other administrative tasks take an average of 10 hours out of the working week.

James Kinsella, co-founder of Instantprint, says, ‘We all know how it feels to fight the clock. There are only so many hours in the day to get everything done and SMEs are feeling the squeeze.

‘It’s interesting to see from the research that, while factors such as admin and staff management have an impact on productivity, it is the management of our hours, minutes and seconds that have the biggest effect on the running of a successful enterprise.’

One in ten business owners has less than an hour a week earmarked for business growth, while eight per cent say they struggle to find any time at all. A third of business owners could use a hand managing their finances to save time, while 22 per cent feel that responding to customer service concerns could be streamlined. A quarter of business owners believe they could improve the efficiency of their SME by hiring more staff, while one in ten want to automate the invoicing process to cut down on financial management. Enable’s experiences Independent financial Advisors know that it is always a fine balance dividing up your working week as an SME.  We are happy to help individuals and their businesses manage their financial plans if we can.

http://smallbusiness.co.uk/battling-red-tape-growth-2536799/

Issued by: Enable Independent Financial Life Planners • 
25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

Moving gridlock

If you are trying to move you might be having trouble at the moment with the high stamp duty and a lack of supply meaning that the number of people moving house has fallen for the first time since 2011.  The figures, produced by Lloyds Bank suggest the drop coming after four consecutive years of growth suggests that fewer "second-time buyers" can afford to move to a larger property, and that older people are not downsizing.

Former Conservative Chancellor Lord Lawson recently described the stamp duty as a tax on mobility calling for Chancellor Philip Hammond to reduce it in the Budget, due to take place on 8th March.

It was the former Chancellor George Osborne who reformed the tax at the end of 2014, meaning that anyone buying a home worth more than £937,000 would have to pay a higher tax bill. The average cost of moving has also increased reaching  £11,000, with rising stamp duty costs, estate agents' and conveyancing fees.

But Lloyds figures seem to show that first-time-buyer numbers are actually up 7pc, suggesting that the slowing housing market is largely down to homeowners who are unable to move up the housing ladder. Andrew Mason, the  banks' mortgages director, said: "Whilst higher prices will have lifted equity levels for many current owners, the low availability of the ’right type‘ of homes for those looking to move up the housing ladder may have constrained market activity. "Just 2.6pc of the housing stock is currently classified as retirement housing. According to estate agent Knight Frank

If you are looking to downsize or move on Enables IFAs can help talk it through.

http://www.telegraph.co.uk/personal-banking/mortgages/housing-gridlock-homemover-numbers-fall-first-time-since-2011/

Issued by: Enable Independent Financial Life Planners • 
25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE 

Where to Save?

Enable’s IFAs know that the pain for savers appears to be never-ending. Recent figures from the Bank of England show that the rates for your average instant-access accounts have fallen to 0.15pc, so it’s hardly surprising that NS&I have also cut their rates including Premium Bonds.

But despite premium bonds prize money being cut from May 2017 from the rate for someone with average luck falling from 1.25pc to 1.15pc it still remain one of Britain's most popular savings vehicles, in which £66.7bn is invested. The complex way in which monthly prizes are distributed, with two £1m jackpots per month, and more than 2m £25 prizes paid, it means the odds of winning with any £1 bond are tricky to calculate but in total, 2,224,513 prizes of all values are currently paid per month. Dropping only slightly to 2,219,493 this May making the odds of any £1 bond winning any prize of any value will remain roughly one in 30,000.

The biggest falls in the number of prizes apply to the £25,000, £10,000 and £5,000 bands. The very smallest prizes of £25 increase from 2.1m to 2.2m. But security is the main draw of NS&I, and the main benefit of Premium Bonds, all the money invested in NS&I is 100pc protected by the Government, and bonds can be cashed at any time. However, many cite the chance to win big is what draws savers into Premium Bonds specifically but there's really is no guarantee, it’s a lottery you could win nothing at all and inflation could be eroding your cash. It's probably best to think of them as a flutter rather than aa savings account. But if you want some help finding better returns Enable’s IFAs are happy help you look at your options.

http://www.telegraph.co.uk/personal-banking/savings/premium-bond-prize-cuts-may-2017-odds-winning/

Issued by: Enable Independent Financial Life Planners • 
25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

Caution in the UK housing market?

Political and economic uncertainty is likely to dominate the UK for a while and Enable’s IFA’s in believe this will continue bring caution to the housing market. Property transactions have been slowing and house purchases remain significantly down there is no doubt that this is partly due to the ongoing lack of housing supply but there are also many other factors at play.

UK house prices grew at their weakest annual rate in more than a year in January, as figures released by mortgage lender Nationwide revealed recently that annual growth edged down from 4.5% in December to 4.3% in January, making it the weakest house prices have been since November 2015.

“January’s icy weather was mirrored by a chill in the housing market. But though the national average price of a home fell by a few hundred Pounds, momentum remains.”said Jonathan Hopper, managing director of Garrington Property Finders. “The annual rate of price inflation is virtually the same as it was at this time last year, and six months on from the Brexit earthquake, the market has settled into its familiar pattern of steady growth.“ But the days of double-digit price rises are gone, and while the market fundamentals are strong enough to drive further growth this year, progress will be sedate rather than stellar.”He continued: “With the prospect of an interest rate rise – and of the cost of living rising faster than people’s wages – back on the horizon, caution will become a dominant force in 2017. If you are looking to get into housing this year Enable’s IFAs can help you look at your options.

https://www.propertyinvestortoday.co.uk/breaking-news/2017/2/caution-to-dominate-uk-housing-market-in-2017



Issued by: Enable Independent Financial Life Planners • 
25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

Inequality in the family?

Enable’s IFA’s see many families who are concerned about he financial inequalities between the older generation and young families. The wealth gap between old and young may already be a well documented phenomenon in the UK but it could be set to grow even faster than expected say The Resolution Foundation.  They are concerned that higher inflation alongside persistently low interest rates and stagnant wages are going to widen the existing inequality between retired and working-age people.

Housing is by far the over riding factor in all of this but some families are adjusting, with older members increasingly likely to raise capital to give to children and grandchildren. The average income after housing costs for those aged between 25 and 34 dipped most heavily during the financial crisis, falling to a 10-year low of £18,891 in 2012; while the average income for over-65s rose sharply and is expected to increase to £22,387 this year making it on average almost £2,000 more than young workers.

According to investment company Hargreaves Lansdown, 62pc of Millennials (born between 80s and 90s) feel they are “financially unlucky”. But “baby boomers”, (born in 50s and 60s) know how lucky they are: 72pc feel their generation has been fortunate. New records are being set for the amount of equity released from homes. Last year £2.15bn was released by 27,563 people, according to the Equity Release Council and much of this borrowing comes from owners’ desire to help family, with almost half (44pc) used to help children or grandchildren, according to provider Key Retirement.

http://www.telegraph.co.uk/money/consumer-affairs/new-family-tax-older-family-members-paying-young/

Issued by: Enable Independent Financial Life Planners • 
25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

Why is the cost of investing falling?

Enable’s experienced IFA’s have seen the cost of investing fall dramatically over the past decade. For many sound financial planning involves talking through your options with experts as well as using technology to reduce costs and increase transparency.

Funds that used to be run by people are now largely automated and run by complex algorithms simply overseen by humans. The daily rebalancing of a typical “passive” fund that tracks the market is now almost entirely autonomous. “Active” managers, who select shares rather than follow the market however also use technology much more. For both active and passive managers, the actual process of investing has also become more efficient. And these benefits are saving investors significant amounts too.

Alongside efficiency there is more and more of a push for active fund managers to be more transparent about the fees they charge. Investors can now easily compare funds’ fees and performance online, and a recent FCA report concluded that active fund fees were too opaque and tended to “cluster” around price points. It suggested that managers should be using an “all-in” fee to make it even easier to compare costs. With more focus on fees and the under performance of many active funds there has been a move towards low-cost “passive” investment. As more money flows into passive funds, the economies of scale grow meaning that they continue to get cheaper.

Some portfolios might have higher costs if they invest in niche assets such as hedge funds who might charge a management fee, plus a performance fee. If you want to make sure you have the right cost associated with your investments Enable’s IFAs are happy to talk it through.

http://www.telegraph.co.uk/investing/funds/four-reasons-cost-investments-falling/

Issued by: Enable Independent Financial Life Planners • 
25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

Are there any gaps in your state pension contributions?

Enable’s IFA’s are keen to help anyone with their pension planning and despite the fact that a state pension may not be all you want to be relying on it is certainly a useful element of your retirement plan. But there have been changes in state pension provision and under the new “flat-rate” state pension you are required to have 35 years of full rate National Insurance contributions to receive the top rate, currently £155.65 a week.

It has recently come to light that thousands of people however would l not get the full amount if they have at some point been contracted out and paid a reduced rate of National Insurance. This set of circumstances is affecting s workplace “final salary” schemes and public sector workers such as teachers and nurses. But by filling in gaps in National Insurance records, you can dramatically boost state pension

But by making voluntary or “Class 3” lump sum payments you can fill in any missing years in your National Insurance record. It may mean you have to spend £4,000 to boost your state pension by £23,000 but hundreds of thousands of people are being urged to use a generous Government scheme to do just that. This guide published by Royal London, Britain’s biggest mutual company, explains how a single year of National Insurance can be purchased for around a lump sum of £733. This will boost state pension payments by around £230 a year for the rest of your life, totalling £4,600 in extra income over a typical 20-year retirement. Filing in five missing years using Class 3 contributions would cost you under £4,000 but generate nearly six times the outlay in extra state pension.

http://www.telegraph.co.uk/pensions-retirement/financial-planning/spend-4000-to-boost-your-state-pension-by-23000---heres-how/


Issued by: Enable Independent Financial Life Planners • 
25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

First-time buyers surge

As independent financial advisors Enable like to be able to support first-time buyers to get their first foot on the property ladder.  Recently increasing numbers of first time buyers have been able to take up low cost mortgages in a slightly stalling property market to take their first stem into property suggests a recent report from the National Association of Estate Agents (NAEA).

The report says that in December 2016 first-time buyers made up almost a third of total sales which is not just a 10% increase on the previous month, but the highest number for the month of December in well over a decade. Overall, the sales agreed may have fallen despite the fact that the number of house hunters that actively registered to buy property rose to the highest level seen since 2003 but the number of properties listed for sale by estate agents in December was up slightly from November.

Mark Hayward, NAEA managing director said, “In November we saw a seasonal slowdown as typically it’s uncommon for people to buy and move close to Christmas. Yet, our December findings have completely bucked this seasonal trend,” He added: “With demand at an all-time December high and sales to first time buyers at their highest on record, 2016 closed on a positive note following several months of uncertainty.” If you are looking to try and get a foot on the housing market Enables IFAs can help you look at your overall financial planning as well as support finding the right mortgage options for you. 

https://www.propertyinvestortoday.co.uk/breaking-news/2017/1/record-numbers-acquiring-their-first-home


Issued by: Enable Independent Financial Life Planners • 
25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

Wanting to fix your mortgage as a landlord?

Enable’s experienced IFA’s have many clients who have a buy to let property as part of their portfolio.  Despite the uncertainty that has been part of the post Brexit vote picture some mortgage offers might well be worth a look.  Barclays has recently unveiled its 10-year fix buy-to-let mortgage at 2.99% meaning private landlords are being offered an opportunity to secure low interest rates for a decade. The mortgage comes with a £2,000 fee but is not subject to strict rental income requirements because of the long time period of the loan.

On mortgage products with a term up to five years, the lender tends to require landlords to demonstrate that their rental income will cover their mortgage payment by a ratio of 145% if their mortgage rate went up to 5.5%. But there is a more flexible ‘affordability calculator’ on products that are five years or longer.  Jonathan Harris, director of mortgage broker Anderson Harris has said of the new buy-to-let product launched by Barclays’: “A 10-year fix for buy-to-let is unheard of and the result of changing circumstances for the sector. “What is exciting about this product is that the affordability calculator takes into account the applicant’s overall income and expenditure position - so massively benefits those applicants with strong incomes and limited commitments. “The upshot is that they can borrow more than previously - a welcome innovation to recent restrictive practices in the buy-to-let market.”

As with many mortgages there are often conditions and this product comes with a high exit charge of 5% if you need to sell or remortgage before the 10 years have passed.  If you are wanting to look into a mortgage for buying or renting we are happy to help.

Your home or rental property could be at risk if you do not keep up repayments.

https://www.landlordtoday.co.uk/breaking-news/2017/1/barclays-unveils-10-year-fix-buy-to-let-mortgage-at-2-99

Issued by: Enable Independent Financial Life Planners • 
25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

Looking after the grandchildren? Make sure you are not missing out on credits

Many families who use the services of Enable’s IFAs in Bishop's Stortford have to make sure they include childcare in their financial planning.  Many grandparents are happy to help and spend time with their grandchildren and help their children but make sure that if you have given up work to look after grandchildren you are not missing out on Government credits. 

Each year that a person misses from work takes £231 a year from their state pension, a loss of £5,800 over a 25-year retirement period so if you are not making sure you have sorted out your Government credits  it could be costing you thousands of pounds in state pension according to some new figures. There is a credit system called the "specified adult childcare credit" and it is designed to protect the pensions of grandparents who retire early to care for grandchildren so their parents can go back to work.

It is believed that more than 100,000 grandparents of working age could benefit from the scheme but a recent Freedom of Information request sent to HM Revenue & Customs has shown that only 1,298 people had claimed the credit in the year to September 2016.  Steve Webb, a director at Royal London and former pensions minister, said: "Many families rely heavily on the support provided by grandparents to enable them to combine paid work and family life.  "The fact that there is a scheme to make sure that grandparents do not lose out, by protecting their state pension rights, is a very good thing. But the scheme is not much use if hardly anyone takes it up. " Enable’s IFAs of Bishop’s Stortford are always keen to try and help the whole family with their finances.

http://www.telegraph.co.uk/pensions-retirement/tax-retirement/thousands-grandparents-missing-nanny-tax-credit-boosts-state/

Issued by: Enable Independent Financial Life Planners • 
25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

How will inflation affect the house price index?

Inflation is difficult to predict but Enable’s IFA’s in Bishop’s Stortford know it is important to keep it in sight for any financial planning. Former RICS residential chairman and London estate agent Jeremy Leaf, has recently said that in his opinion inflation has taken over from Brexit as “the biggest threat to affordability and confidence in the housing market.” His statement comes after the announcement that inflation had leapt to 1.6 per cent, the highest for 18 months in a bigger rise than had been expected. “If the cost of everything is going up, people feel poorer and less inclined to take on further debt. With the housing market it always comes down to confidence and if people see bad news, they tend to overreact, sit on their hands and do nothing” warns Leaf.

The comments were made soon after the Office for National Statistics released its figures for house price rises in the year to November suggesting that they have risen by an average of 6.7 per cent in the year to November, across the UK, which was up from 6.4 per cent a month earlier. Making the average UK house price £218,000 in November 2016 some £14,000 higher than in November 2015 and £2,000 higher than October. As is usual the biggest rises were seen in England, where prices increased 7.2 per cent in the 12 months to the end of November making the England average price is £234,000.  Leaf says, “the house price index findings are not too surprising because ... they are a little bit historic. We expect to see some moderation in price growth in future as we have already seen on the ground in the past month or so. Shortage of stock and increased nervousness is showing itself in only slightly higher prices and lower activity.” If you are trying to make plans for housing we are always happy to talk you through your options and Enable in Bishops Stortford.

https://www.estateagenttoday.co.uk/breaking-news/2017/1/inflation-bigger-problem-for-housing-market-than-brexit-claims-top-agent

Issued by: Enable Independent Financial Life Planners • 
25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

Mortgage lending in 2016 was fairly resilient but what next?

Enable’s IFA’s in Bishop’s Stortford know that 2016 was weighed down by uncertainty but towards the end of the year mortgage lending increased and even though the outlook for lending to home buyers is less bullish at the moment than it was a year ago, according to the latest report from the Council of Mortgage Lenders (CML,) the market is still proving to be resilient.

Paul Smee, director general of the CML said ‘November lending reflected stable market conditions. Overall, 2016 did not match recent years in terms of house purchase lending growth, but lending remained resilient through regulatory and political change and aspirations for home ownership remain strong in the UK,’  In the report it was recorded that overall home owners borrowed £11 billion in November 2016, up 5% month on month and 2% year on year. A breakdown of the figures indicates that first time buyers borrowed £4.7 billion, up 4% on October and 9% on November last year while home movers borrowed £6.3 billion, up 7% on a month ago but down 5% compared to a year ago.  Alongside this remortgage activity reached £5.8 billion, down 5% on October but up 14% compared to a year ago while landlords borrowed £3.2 billion, up 10% month on month but down 9% year on year.

‘Our forecasts for 2017 may be less bullish than a year ago, as economic uncertainty weighs on the market, but we still predict 1.2 million transactions and a slight increase in gross lending to £248 billion,’ said Smee. Peter Williams, executive director of the Intermediary Mortgage Lenders Association (IMLA), agreed that the market is showing signs of stability in the face of wider uncertainty but there will be winners and losers. If you want to make sure you have the best mortgage in place for you Enable’s experienced IFA’s are here to help.

http://www.propertywire.com/news/uk/home-lending-uk-remained-resilient-2016-outlook-2017-less-bullish/


Issued by: Enable Independent Financial Life Planners • 
25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

Savings offer something

It has been a difficult time for savers but for the first time in six months there is now a four-year savings bond that pays 1.95pc. Ikano Bank has increased the rate on its three and four-year fixed-rate savings bonds. The new offerings push both products to the top of the best buy tables, with the three-year bond paying 1.75pc.

According to Moneyfacts, the last time a three-year fixed rate bond paid 1.75pc was October 7th 2016 with Al Rayan Bank and it was withdrawn the very next day. The Ikano Bank accounts can be opened online with £1,000 and managed by telephone if preferred. Customers are given 14 days to credit the account.  Interest can be paid into the account, allowing for compounding, or into a nominated account. As to be expected no access is permitted during the term.

Ikano Bank's new rates soar above Masthaven's current market leading three-year bond, which pays 1.67pc, and Vanquis Saving Bank's four-year account, which offers 1.8pc. The jump in rates follows a flurry of recent competition in the fixed-rate bond market over the past few months for the first time in more than a year.

There is some hope that the competition we are seeing from smaller providers could suggest that  the current tide could well be changing for savers, who have faced rock-bottom interest rates for years, said Andrew Hagger, founder of Moneycomms, although he said "rocketing rates" are unlikely. If you would like some help making your savings work for you Enable’s IFA’s in Bishop’s Stortford are able to help you look at all your options.



Issued by: Enable Independent Financial Life Planners • 
25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

http://www.telegraph.co.uk/personal-banking/savings/four-year-savings-bond-pays-195pc-first-time-six-months/

Conquering debt in 2017

Enable’s IFA's know that before any saving can really happen you have to pay down any expensive debts. Many of us start the New Year having overspent in December and as some of those bills come more into focus it is good to take any of your debt in hand and sort it out. Once you have it in your sights it is easier to reduce.

The best place to start with sorting out debt is to know your budget and what your regular income and outgoings are.  Many of us know roughly what our out goings are but it can be good to write it down and maybe even create a household budget. When you know what you need to spend regularly on essentials you can then get a grip of avoiding debt, one of the biggest reasons for accruing  debt across all income levels is prioritizing discretionary over non-discretionary spending  in other words failing to distinguish between needs and wants.

If you are going to have a bit of a New Year cleanse of your outgoings start by looking at your credit card and debit statements, focus on any automatic payments for recurring bills and check if you still want them items such as gym memberships, streaming services or wireless plans you no longer need. At the same time focus on paying off any high interest accounts such as credit cards first.  Credit cards are typically charged at higher interest rates than other borrowing. It is important to set yourself goals that you can stick to - pay down your debt so you can start saving for the future.

http://www.ctvnews.ca/5things/conquering-your-debt-in-2017-starts-with-a-written-financial-plan-1.3228619




Issued by: Enable Independent Financial Life Planners • 
25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

What would you do with a long retirement?

Enable’s IFAs in Bishop’s Stortford know that an early retirement can look very attractive but stopping work can suddenly bring a big change of status and you can find that days that were busy with commuting, meetings and deadlines are now long and empty. Others do not find this at all and fill their time with travel, voluntary work and hobbies to make a life just as fulfilling as working.

Many people of retirement age have load more energy, current  retirees just aren’t as tired out as previous pensioners because they  are part of a generation that was great in number but with relatively few children and elderly parents dependent on them, so they were able to be pretty economically productive, by largely working less than their predecessors. According to analysis of OECD and Bank of England data by the International Longevity Centre, over their lifetimes, those retiring today have worked an average 23 hours per week, versus 30 hours for those retiring in 1970 a third less!

They have also enjoyed far better health, thanks to improving diets and medical care. Dr George Leeson, co-director of the Oxford Institute of Population Ageing at Oxford University, believes that soon 65-year-olds will be living another 35 or 40 years as the norm. 'Everything is going to change', he said. 'That life extension that we’re seeing is not time spent in frailty, they are not inactive years.'
It could mean a whole new phase of life in late middle-age, encompassing retraining and extra education. 'At the moment we tend to think of our lives in thirds,' Dr Leeson said. 'Divided roughly, we educate ourselves for a third, work for a third and are retired for a third. If you want some help talking through how you are going to operate for the final third of you life Enable’s IFAs are here to help.


Issued by: Enable Independent Financial Life Planners • 
25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

http://www.thisismoney.co.uk/money/pensions/article-4025794/What-40-year-retirement.html

Planning your retirement

Enable’s IFAs in Bishop’s Stortford know that worries about pension provision can keep people awake at night but the best way is to face the situation and find out where you stand with your pension.

Before you worry too much or doing anything radical you need to take stock and see what provision you already have. Many people have a mixture of entitlements to the three main types of pension: one provided by the state which is based on your NI records. Under the new system which came into force in April 2016 the full state pension is worth £155 a week, which amounts to just over £8,000 a year. To receive this full amount you will need to have 35 years of NI payments, but you can top-up missing years and buy extra income. Some will also have a “final salary” plan (which is a guaranteed income based on your salary and length of service with a company) and then there is the “defined contribution” (which is a simple pot of savings but with no guarantees attached).

If you don’t know about all your possible pensions make a list of all the companies you have worked for to date and if you don’t know what the pension provisions were you can use the Government’s free Pension Tracing Service . Once you know what you have your investment strategy really depends on what you plan to do with your pension, you might want take the entire pot as cash, buy an annuity, or go into “drawdown” which drip feeds you cash leaving the lump sums to grow. Pension companies can tend to make broad assumptions, based on your age and other factors that might be at odds with your goals so make sure you get some good advice. Enables IFA’s in Bishops Stortford are always happy to talk through your pension plans with you.


Issued by: Enable Independent Financial Life Planners • 
25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

http://www.telegraph.co.uk/pensions-retirement/financial-planning/five-steps-pension-perfection-2017/

Where are buy-to-let mortgages heading?

Several of Enable’s clients in Bishop’s Stortford have residential property included in their financial plans and if you are a smaller landlord there could be good news buy-to-let mortgages are predicted to fall in 2017 for ordinary landlords, but they may get more expensive for professional landlords with large portfolios.

Mortgage broker John Charcol is predicting a buy-to-let mortgage rate war in the so-called 'vanilla' end of the market, (landlords with just one or two properties) as a wave of tax and regulation changes drive the big high street lenders to drop rates for smaller scale landlords with lots of equity, who they consider lower risk. 'I definitely believe that we may well see a bit more competition in the very vanilla section of the buy-to-let market said Simon Collins, of mortgage broker John Charcol, says: 'Whether this will lead to higher pricing in the complex end of the market is really yet to be seen but the whole buy-to-let market is undergoing a real sea change.'

Tougher lending rules that have applied from 1 January have been forced on lenders by the Bank of England. These mean that the vast majority of buy-to-let mortgages will only be approved if the landlord can demonstrate their rental income would cover their mortgage payment by a ratio of 145 per cent if their mortgage rate went up to 5.5 per cent. This is a significant jump from the recent norm applied by lenders, of 125 per cent rental coverage at a lower rate.

Your home could be at risk if you do not keep up your mortgage repayments


Issued by: Enable Independent Financial Life Planners • 
25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE




http://www.thisismoney.co.uk/money/buytolet/article-4048980/Buy-let-mortgage-rates-predicted-fall-2017.html

Promise yourself some Financial Planning in 2017

Enable’s IFAs in Bishops Stortford know that financial planning is really important and the sooner you address it the better. It is also an ongoing process that will help you make sensible decisions about money so that can help you achieve your goals in life it is so much more than just having help buying financial products like a pension or an ISA.

Part of the picture of financial planning might also involve planning for what happens if you get ill or if you are no longer able to care for you family.  It is important to have an appropriate will in place to protect your family, and there are other ways of thinking about how your family will be able to manage without your income should you fall ill or die prematurely, through insurances.

We can all choose to spend our money differently, but a good financial plan involves thinking about what you want for your life and forming your own plan. The best place to get started is to work out some life goals some might be short term goals some medium or long term goal, it can help to write them down. Then it is worth assessing your assets and liabilities and taking a long hard look at your current financial situation asking yourself how close you are to achieving any of your goals.  Once you have a clearer idea of what you want you can then work on a “route map” for achieving your different goals this is where one of Enable’s IFAs might be able to help you implement your plan. If you already have a solid financial plan we can help you monitor your plans an annual review is always a good idea.

Issued by: Enable Independent Financial Life Planners • 
25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

Investment trends of 2016/17

Who would have thought it despite Brexit and Donald Trump becoming president of America the markets have been surprisingly buoyant. Who could have predicted that the Dow Jones would end the year at near 20,000? If you’d bought Germany’s DAX index at its 2016 low (back in February), you’d now be up more than 30%. And the FTSE 100 being at a record high of 7,142? As ever with the markets it is never plain sailing but that was mostly due to turmoil in China at the start of the year.

According to money week two of the biggest investment events of 2016 were the end of the commodities bear market. And then there was the return of rising interest rates as the financial sector started to recover dramatically after a big plunge in 2015. After all the Brexit fear it seems that the markets have got a grip. Perhaps they realised that if Brexit was the worst thing that could happen to the global economy, then things weren’t all that bad.

But will all of this continue into 2017? You ask. It was a long bear market, so it would be surprising for things to turn too bad again too quickly in the commodities market.  But interest rates, are harder to predict perhaps they will rise rapidly? It kind of depend more on what politicians do next, will they really start spending? Or will we see another deflationary scare before too long? Britain however is likely to see inflation this year as the effects of the weak pound feed through. If you want to talk through what to do with your investments Enable IFAs are here to help.

http://moneyweek.com/two-big-investment-trends-shaped-2016-but-can-they-survive-in-2017/



Issued by: Enable Independent Financial Life Planners • 
25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

Another year to wait for your state pension?

Enable’s IFA’s of Bishop’s Stortford noted that at the end of last year it was reported up to 30 million people could be forced to wait an extra year before receiving a state pension under new plans being considered by Government.  If you want to make sure you are making the best of your pension savings we can help you look at your figures.

The government squeeze could form part of another major state pension age review which could force people retiring after 2028 to work longer, threatening to shrink the retirements of all adults currently aged 22 to 54. The plans could save the Treasury around £240 billion by shaving an extra 12 months off their state pension entitlement. The final results of the wider state pension review will be published next May and are expected to recommend younger generations should work beyond the age of 70.   The Government has committed to reviewing the State Pension age every 6 years.

Plans for the wider state pension review have been afoot since 2013 but this latest change will have far-reaching consequences if it goes ahead. There does not seem to have been much protest maybe people never believed the State Pension promise anyway, or maybe it is just too far away to worry about. But if you are worrying about what your pension might look like it is never too early to talk to our experienced independent financial advisors at Enable.

http://www.telegraph.co.uk/news/2016/11/21/30-million-55s-will-have-work-extra-year-getting-state-pension/

Issued by: Enable Independent Financial Life Planners • 
25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

Property Investment in Europe?

Enable's experienced IFA’s in Bishop’s Stortford know that most wealth management packages involve an element of commercial property and according to a report from investment firm Fidelity International, investing in commercial real estate in Europe is set to continue to produce positive yields in 2017. 

It says that the European Central Bank’s quantitative easing programme has continued to encourage a transfer of capital from the periphery to the core Eurozone, and this capital is chasing high quality real assets in core Europe, especially Germany. Overall, European real estate markets have delivered strong returns in recent years and, although the cycle is maturing, it is far from over. Neil Cable, Fidelity International’s head of European real estate explained that in the strongest markets of Europe, especially Germany, values have been steadily increasing for the past couple of years, and this is likely to continue well into 2017.

‘Real estate fundamentals are expected to remain positive, and while QE is in place, we believe the weight of capital will extend the European, excluding the UK, investment cycle. We expect capital growth from yield compression in core Eurozone to continue, albeit at a slower pace, with prime yields likely to fall to a new accepted threshold of around 3%,’ said Cable. ‘As we approach 2017, investors should retrain their focus on the underlying income in their property investments, understand the quality of the tenant companies paying the rents, and ensure good diversity of lease length and tenant type.,’ he said.

If direct property investment is not for you making sure some commercial property is part of your broader portfolio is what Enables’ IFAs in Bishops Stortford can help you think through.

http://www.propertywire.com/news/europe/commercial-property-investment-europe-set-continue-positive-yields-2017/

Issued by: Enable Independent Financial Life Planners • 
25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE